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Nikkei Higher in Early Trading

October 7, 1999

TOKYO (AP) _ Japanese share prices opened higher early Thursday following a big rise on Wall Street. The dollar was lower against the yen.

The benchmark 225-issue Nikkei Stock Average rose 89.54 points, or 0.50 percent, to 17,985.96 in the first 30 minutes of trading. The average closed up 112.27 points, or 0.63 percent, the previous day.

The dollar was trading at 107.28 yen, down 0.08 yen from its level of 107.36 yen late Wednesday in Tokyo and also below its level of 107.51 yen late in New York on Wednesday.

On the stock market, share prices moved broadly higher with mining, precision instruments, and brokerage issues taking the lead. Blue chip exporters such as Sony, Toyota, Bridgestone, and Canon all rose moderately.

``A lot of short-covering is going on, especially after players went short on the cash and futures markets yesterday,″ said Kunihiro Hatae, general manager of the stock division at Tokyo Securities. He was referring to players rushing to buy back shares after having sold them the day before.

In New York, the Dow Jones industrial average gained 187.75 points, or 1.8 percent, to close Wednesday’s session at 10,588.34. Stocks rose on a rebounding bond market and optimism about corporate earnings.

The broader Tokyo Stock Price Index of all issues listed on the first section climbed 6.04 points, or 0.40 percent, to 1,518.57. The TOPIX closed up 2.47 points, or 0.16 percent, the previous day.

In currency trading, the dollar was marginally lower after rising sharply the day before.

The U.S. currency was bought back late Wednesday after falling earlier in the day on warnings from the U.S. Federal Reserve about further interest rate increases, traders said.

In other currencies, the euro bought 114.90 yen, down 0.38 yen from its level of 115.28 yen late Wednesday.

The yield on the benchmark 10-year Japanese government bond rose to 1.7150 percent from Wednesday’s finish of 1.6950 percent. Its price fell 0.17 point to 99.87.

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